New Delhi [India], March 22 (ANI): On Saturday, the central government removed the 20 percent tax on onion exports that had been implemented in September 2024.
This decision will take effect on April 1, 2025. Today, the Department of Revenue released an announcement through the Department of Consumer Affairs' channels.
In order to secure domestic supply, the authorities implemented various strategies such as levying duties, setting a minimum export price (MEP), and ultimately prohibiting exports altogether for nearly five months, spanning from December 8, 2023 until May 3, 2024.
The 20 percent export duty, which has been lifted, has been effective since September 13, 2024.
In spite of the export limitations, the authorities stated that the overall onion exports for the period from 2023-24 amounted to 17.17 lakh tonnes, and between April 2024 up until March 18th, they reached 11.65 lakh tonnes.
The monthly export of onions increased from 0.72 lakh tonnes in September 2024 to 1.85 lakh tonnes in January 2025.
"The decision serves as further evidence of the government’s dedication to securing fair compensation for farmers while keeping onions affordable for consumers during this critical period. This comes as both wholesale and retail prices have decreased with the anticipated significant arrival of winter harvests," stated the Ministry of Consumer Affairs, Food & Public Distribution in an official release.
Despite the present mandi prices being higher than those during the same time frame of earlier years, the bulletin stated that there has been a 39 percent decrease in the nationwide weighted average modal prices.
Likewise, the nationwide average selling price for onions saw a decrease of 10 percent in the last month.
The arrival of onions at the key markets of Lasalgoan and Pimpalgaon has seen an increase starting this month.
According to the estimates from the Department of Agriculture and Farmers Welfare, this year's rabi production stands at 227 lakh metric tonnes, which is more than 18 percent higher compared to the 192 lakh tonnes recorded last year.
The Rabi onion, making up 70-75 percent of India's entire onion output, plays a vital role in ensuring consistent supply and price stability until the Kharif harvest begins in October/November.
The anticipated increased output for this season is projected to continue reducing market prices in the upcoming months, according to the food ministry. (ANI)
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